LSR expands US rare earths ground 40%, hits highest grades yet

Our US heavy rare earths Investment Lodestar Minerals (ASX: LSR) just increased the size of its project in Arizona, USA by ~40%.

This is the project LSR acquired back in October - prospective for heavy rare earths, including:

Dysprosium and terbium - essential for stabilising the high-performance magnets, processors, and cooling systems that power advanced military hardware, robotics, and AI infrastructure.

Lutetium - provides critical radiation and threat-detection capabilities and also serves as a vital building block for next-generation quantum computing.

After today, LSR’s project has ~175m of surface mineralisation (outcropping) and ~5km of strike to test (the bigger project area actually covers more of that 5km area too):

(source)

LSR also included new rock chip samples from the project with grades up to 14.68% TREO (including 0.76% dysprosium oxide) at 59% heavy rare earth concentration, the strongest result LSR has returned from this project.

The key for us from those results are the % concentration of heavy rare earths - consistently at or above 50%:

(source)

These assays also extend the high-grade surface mineralisation by 175m from the Hummingbird zone, meaning the structure can now be followed continuously at surface.

(source)

As a reminder, the mineralisation here is hosted in xenotime, one of the only heavy rare earth dominant minerals with a proven commercial processing pathway.

(many other rare earth hosts can end up being much more of a chemistry experiment than mining project).

We wrote about why that matters back in March - see that note here: LSR: Dysprosium, terbium and lutetium in xenotime... huh? The market liked it.

Next, LSR is planning a high-resolution airborne radiometric and magnetic survey over the expanded project area - basically more work to find the best drill targets:

(source)

What else is LSR up to?

The next big drill program we are looking forward to for LSR is at its Los Loros copper project in Chile.

This is the project that was previously drilled by the United Nations and supermajor $70BN Anglo American.

Since 1969 no one has done any modern geophysics on that project.

LSR has permits pending on this project right now with drilling planned for this month across the 5 IP targets (IP1-IP5) defined by the May 2026 geophysics. (source)

This includes IP1 next to the historic Anglo American hole that hit 136m @ 0.20% copper equivalent.

(source)

Drilling should be getting underway here soon, we saw this video last week with CEO and Executive Director Coraline Blaud from on site ahead of drilling was expected to then be within the next 2 weeks:

Can Lodestar unlock a new Chilean copper-gold discovery?:

What’s next from LSR?

🔄 Chile copper drilling

LSR has two projects in Chile, Los Loros and Three Saints.

The first one LSR drilled was Three Saints - here are the milestones we are tracking for that project:

• ✅ Maiden drill hole completed (600m)
• ✅ Assay results from hole 1
• 🔄 Assay results from hole 2 (Assays expected “within the next month”) (source)

The next one to be drilled will be Los Loros - here are the milestones we are tracking for that project:

• 🔲 Drilling date confirmation, drill rig secured
• 🔲 Drilling underway (expected within the next week or 2)
• 🔲 Assay results

🔄 10,000m drilling program on WA gold project

Drilling on this asset started a few weeks ago.

We are hoping to see the 250,000 to 300,000 ounce exploration target converted into a maiden resource estimate post drilling.

Here are the milestones we are tracking on that project:

• ✅ Drilling starts
• 🔄 Assay results
• 🔲 Resource estimate

🔄 Target generation on the US rare earths project

We want to see LSR continue to advance its US asset with mineralogical studies and then plan the next round of exploration.

Here are the milestones we are tracking for the US asset:

• ✅ Mapping and sampling (soil and rock chips)
• ✅ Mineralogical studies
• 🔄 Geophysics/ follow up field work
• 🔲 Drill targets confirmed